Profits Reportedly Went to Political Group

the Contra rebels.

A highly successful fund-raiser known for his ability to collect thousands of dollars through one-on-one solicitation of the wealthy, Channell said his foundation has raised nearly $6 million this year for his pro-Contra public awareness campaign.

Rep. Mike Barnes, D-Md., the target of the most hard-hitting of Channell's commercials last spring, said Sunday he would formally request on Monday a congressional probe of allegations that money diverted from the sale of U.S. arms to Iran was funnelled into such conservative groups.

Channell dismissed as fantasy the notion that his four conservative groups--his nonprofit National Foundation For the Preservation of Liberty, his two affiliated political action committees or Sentinel, his lobbying group--got any such money.

"It's all private contributions," he said when asked about his fund raising.

Channell, in a telephone interview last week, also denied an NBC News report that North was principal adviser on the media campaign, but said he met several times with North over the past year to get information about the Central American question.

In addition, North, who took the Fifth Amendment last week rather than tell a House committee about his role in the Iran-Contra controversy, spoke to groups of Channell's contributors and provided documents and pamphlets on the Central American issue.

"North would get up in front of a number of people and give an update on what the situation was in Central America," said Adam Goodman, political director of the Baltimore-based Robert Goodman agency, which produced most of Channell's TV ads. Goodman said North did not engage in fund raising or political posturing at the events, which included lavish dinners at Washington's exclusive Hay-Adams Hotel.

Goodman said his agency attended two such "briefings" by North, but that North was not involved in the ad production.

Some of Channell's contributors recalled attending such Washington sessions at Channell's invitation.

"Col. North talked to us ... I happen to think Col. North is a fine young man," said C. Thomas Clagett, Jr. of Washington, who gave $1,000 this year to Channell's political action committee, American Conservative Trust. He said he made a donation at the event he attended. "Obviously they wanted money," he said in a telephone interview. "I donate funds to causes I believe in."

Barnes, an outspoken opponent of Contra aid, said in an interview Sunday that he will ask the special investigative committees being set up by Congress to look into possible funnelling of weapons-sale money to conservative groups.

"There are now rampant allegations that the monies spent against me and other opponents of the president on Nicaragua by these ... groups may have come from the money we have now heard about (as being diverted) from the Iran arms sale," he said. He said he had no independent information other than reporters' questions about possible political use of Iran arms-sale proceeds that Attorney General Edwin Meese says was funnelled to the Contras.

"What it really comes down to is ... where did the money go," Barnes said, referring also to the unaccounted for 64 percent of the $27 million in U.S. humanitarian aid for the Contras.

Rep. Lee Hamilton, D-Ind., chairman of the House Intelligence Committee, said yesterday he did not know if pro-Contra money went into political activity. "We just have no evidence of that at this point," he said.